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Pension WorkshopCity of East Point

Employees Retirement Plan

Pension Workshop

Pension Board

Retirement Plan Update

Overview of Benefits

Processing of Applications

Pension Board (Plan Administrator)

Pension Board (Plan Administrator)

Meets Monthly as Needed

Holds Quarterly Investment

Meetings

Hires and Manages All Service

Providers

Reviews and Approves All Benefits

Board: Administers Plan

Follows the Laws Governing

Public Pension Funds:

– Plan Document

– Georgia Constitution

Complies with IRS and

Federal Requirements

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Board: Administers Plan

Board: Oath of Office

Trustees Serve as Fiduciaries

Establishes and Enforces Board

Policies for Plan

Annual Board Training– Trustee Certification

– Re-certification

Board: Administers Plan Citizen Representative: (Appointed by Council)

Charlotte Cagle, CIO, CPPT, Chair (4 Year Term)

Active Member Trustees (4 Year Elected Terms)o Cecelia Raglin, CPPTo Lamar Holt, CPPT

Retired Member Trustees (4 Year Elected Terms)o Marlin Humphrey, Vice Chair (Police)o Raymond Bearden, Secretary (Fire)

Appointed Trusteeso Alexander Gothard, CPPT (2 Year Term)o Lolita Grant, CPPT (City Representative)

*CPPT = Certified Public Pension Trustee

Pension Board (and Board Hired

and Managed Service Providers)

Actuary Investment Consultant

Attorney Investment Managers

Auditor Member Services

Custodian

Board

Board Retained Service Providers

Actuary: Cavanaugh MacDonald

Auditor: Mauldin & Jenkins

Legal Counsel: Morris, Manning, and Martin

Custodian: US Bank

Investment Managers: Multiple

Investment Consultant: Southeastern Advisory

Services to Members: Resource Centers

Board Controls

Independent Annual Audit

Independent Annual Valuation(Determines Contribution Requirement

to Fund Future Earned Benefits)

Board Retained Legal Counsel

Board Retained Investment

Consultant

Board Awards

Administration

Funding

Transparency

Reporting

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Trustee Education

Georgia Senate passed HB 196 by

a 47-1 vote on March 22, 2019.

HB 196 requires new Trustees to

complete 8 hours of education, all

Trustees to complete 12 hours

continuing education every 2 years.

Defined BenefitPension Plan

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Pension Plan Benefits

Disability Retirement Benefit Survivor Benefit

Retirement Benefits:

Normal Retirement Benefit

Early Retirement Benefit

Optional Forms Payment

Defined Benefit Plan

Plan Benefit Groups

Class 1: Transferred from old Plan on June 19, 1975

Class 2: General Employees hired before April 1, 1992

Class 3: Police and Fire Members hired before April 1, 1992

Class 5: Eligible full-time employees hired on and after April 1, 1992

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Defined Pension Benefit

Funded mainly by Investment Returns, Investment and Plan Management

Employer contributions + Employee contributions of 6%

Vesting: 10 years service (Amendment 3)Age requirement eliminated as of April 17, 2017.

Separation before normal retirement– Deferred benefit

– Refund of contributions with interest

Class 2 & 3 Members : (Hired Before April 1, 1992)

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Class 5 Members: (Hired On & After April 1, 1992)– General Employees: Age 65 and 10 Years Service

– Elected Officials: Age 60 and 5 Years Service

– Police and Fire: Age 55 and 10 Years Service

Credited Service:– Years and Completed Months

– Sick Accrual Hours: Additional Months

Plan Normal Retirement

Benefit Formula (Class 5)

Pension Plan Formula:

(Final Average Salary) x (Number Years

Of Service) x Multiplier%

Final Average Salary: Highest 78 Consecutive Bi-weekly Pay Periods

Multiplier: Based on Age

Elected Officials: $30/ Year Service at Age 60, 5 Year Vesting

Multiplier (Class 5)

Pension Plan Formula:

(Final Average Salary) x (Number Years

Of Service) x Multiplier%

Final Average Salary: Highest 130 Consecutive Bi-weekly Pay

Periods (60 Months)

Multiplier: 2.25%

Elected Officials: $25/ Year Service at Age 60, 5 Year Vesting

Benefit Formula (Class 2 & 3) Early Retirement

Class 2 and Class 3 Members: – Age 50 with 10 Years Service

– Benefit Reduced 3% Each Year Early

Retirement Precedes Normal Retirement Date

Class 5 Members: – General Employees Age 55 with 10 Years

– Police & Fire Age 50 with 10 Years Service

– Benefit Based on Multiplier Table

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Optional Forms Benefit Payment

Class 2 and Class 3 Members: – Life Annuity (Lifetime Benefit)

– Optional Survivor Benefits Include Joint

100%, Joint 75%, Joint 50%, Joint 25%

– Period Certain: 5, 10, 15, and 20 Years

Class 5 Members: – Life Annuity (Unmarried Members)

– 75% Joint Survivor (Married Members)

– Optional Survivor Benefits Include Joint

100%, Joint 75%, Joint 50%, Joint 25%

– Period Certain: 5, 10, 15, and 20 Years

– Partial Lump Sum Options: 5%, 10%, 15%,

20%, and 25%

*COLA: Cost of Living Adjustment

Classes 1, 2 & 3 Members: – Automatic, Payable Each January

– Percent Increase US City Average CPI from

November to Preceding November

– Maximum Cola 3% Annual Increase

Classes 4 & 5: – Board Consideration Every 2 Years

– City Council Votes to Approve

Choice of Benefits(Class 2 & Class 3 Members)

Class 2 & 3 Benefit

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Class 5 Benefit

Final Average Salary (5 Years vs. 3 Years)

Benefit Multiplier Differences

Optional Forms of Benefit Payment

Cola Increases

AdditionalPlan

Provisions

Refunds of Contributions Plan Survivor Benefits

Class 2 and Class 3 Members:– Beneficiary Receives Otherwise Normal Retirement

Benefit at Member Age 65– Actuarially Equivalent Benefit Payable Immediately– Benefit Increased for Members Hired Before

December 1, 1987

Class 5 Members:– Beneficiary Receives Accrued Benefit at Otherwise

Normal Retirement Date– 60% of Average Monthly Compensation Reduced

if Member Dies Before Age 50– Minimum Benefit $30 Per Year Credited Service

Benefit Payable For Life

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Other Plan Provisions

Transfer of Service: – Service Combines for Vesting and Eligibility– Separately Tracked Benefits Commence at

Early or Normal Retirement Date

Rehire Following Retirement:– Ineligible Members Continue to Receive Benefit

• Member Reached Normal Retirement Date – Age 55 for Public Safety– Age 65 for General Employees

-OR-– Member At Least Age 62 Upon Reemployment

• Member Not Employed Full-Time– Benefit Stops for Eligible (Full-Time) Employees

Additional Considerations

Alive and Well: The Board sends an annual verification letter to all retirees receiving benefits from the Plan.

Social Security Windfall Elimination:– Formula to adjust Social Security benefits– Applies to employees receiving pension for

non-Social Security covered work– Reduces benefits from Social Security

Board Application Procedures for Retirement

Application filed with Member

Services 60 days in advance

Member Services provides estimate

of benefit

Actuary certifies benefit

Board review and approval of

actuarially certified benefit

Participant elects form of benefit payment

Board reviews supporting documentation

Board authorizes all benefit payments

Custodian pays benefit earned by retired

members

Benefit commences on first of month following

retirement date

Board has 90 days to process all Benefit

Applications

Board Application Procedures for Retirement

Application: 60 Days “Notice” Prior To Retirement

Final Calculation: 1 Week Following Receipt of Final Payroll

Benefit Calculation & Forms Sent to Member

Member: 1-2 Weeks to Respond

Simultaneous Review By Actuary

Board Reviews and Votes to Approve Benefit

Set Up Pension Payment: 1 Week

Actual Receipt First Check: End of Month

Board Application Procedures for Retirement

Required Forms– Application for Retirement– Commencement Form– Tax Withholding Forms (W-4P & G4-P)– Direct Deposit Form & VOID Check

Additional Items– Proof of Age– Copy of Marriage License– Beneficiary Designation

Board Has 90 Days to Process All Benefit Applications

Board Application Procedures for Retirement

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www.EastPointPension.comOnline Pension Benefit Estimator

(Account Balances and Real Time

Pension Estimates)

Board Awards: Administration,

Funding, Transparency and Reporting

Board Professional Memberships and

Affiliations

Contact Your Trustees

Pension Status One Sheet Update

Plan Reports and Documents

(Summary Plan Description, Valuation,

GASB, and Audit Reports)

East Point HR– Hard Copies Forms– Hard Copy Summary Plan Description

Pension QuestionsContact Resource Centers for ALL Pension questions!

Where else can I go?

THE RESOURCE CENTERS

Services to Members of Plan(800) 206-0116

EastPoint@ResourceCenters.com

This workshop is designed to beeducational in nature and is notintended to provide investment, tax,or legal advice.

You should consult with your own tax,legal, accounting professionals or anyother advisors for advice on theimplementation of any plan of actionin your particular situation.

Disclaimer

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